Don't turn out the lights yet

Given the drop in share price, GQC has now become a value buy instead of a pure speculation. This project has a long ways to go. It is clear that the IP anomaly is not a simple outline of the high grade ore and that it is going to take more holes to understand the geometry of this deposit.There will be misses and more positive surprises. The difference now is that a positive surprise should move this stock up given how badly beaten up it is. The world class intersections of gold/copper on this property have not disappeared.

I think much of the market's response relates to hole 106 and that a lot of people (including myself) thought that the hole was designed to cross-cut the very high grade intercepts of the hole 93 area and thereby produce more spectacular results. However, hole 106 (as per news release) ended up 230 meteres below the total depth of hole 93. In other words, with hole 93 at a vertical depth of 432m, hole 106 ended up at 662m vertical depth. Given that the bottom 30m of hole 93 was out of the mineralized zone we should not be surprised with the results of hole 106 as it was far too deep and merely confirmed what we already knew. I am not sure hole 106 was meant to undercut hole 93 as deep as it did.

GQC is now trading at about $75 million market cap on a fully diluted basis....now a value proposition based on its Romero results and resources at Escandalosa. The combination of a bear market and tax loss selling has put a lot of very good juniors on sale ....GQC should be high on the shopping list for those who are patient and have some steel in the belly.